Ribbon Communications Expects Strong Q3 EBITDA, Upbeat Financial Outlook

Ribbon Communications Inc (RBBN) is projecting Q3 adjusted EBITDA between $28-$34mln. Analysts forecast an average target price of $6.00, indicating a 41.18% upside from the current price. The company has seen strong demand, with a 35% increase in backlog and sales growth in cloud and edge business, particularly in Asia.

Ribbon Communications Inc (RBBN) has provided an optimistic outlook for the third quarter, projecting an adjusted EBITDA between $28 million and $34 million. This projection underscores the company's strong financial performance and growth prospects. The company's earnings call highlighted several key developments that contributed to this positive outlook.

Ribbon Communications reported a robust second quarter, with total revenue of $221 million, marking a 22% sequential increase and a 15% year-over-year rise. The company's Cloud and Edge segment delivered record-high profitability, with revenue up 27% sequentially and 24% year-over-year. Sales to global service providers, including Verizon Communications and U.S. federal agencies, were a primary driver of growth, with total cloud and edge revenue increasing approximately 20% year over year [2].

The company's strong presence in Asia, particularly in India, has also contributed to its growth. Sales in India increased 80% year over year, contributing to the highest level in the last five years. This growth was driven by strong demand and key customer wins, including a significant contract with a Tier 1 telecom operator in Southeast Asia [2].

Analysts remain bullish on Ribbon Communications, with an average target price of $6.00, indicating a 41.18% upside from the current price of $4.25. The consensus recommendation from 7 brokerage firms is currently 2.0, indicating an "Outperform" status. GuruFocus estimates the GF Value for Ribbon Communications Inc in one year at $3.17, suggesting a downside of 25.41% from the current price [1].

Ribbon Communications expects a strong second quarter with sales projected to grow more than 10% year over year. The company's backlog has increased by 35% from the same point last year, indicating strong demand. The company's cloud and edge business continues to be a growth engine, with sales growing approximately 6% year over year [1].

Despite some challenges, such as lower than expected first-quarter sales and lower margins, Ribbon Communications has demonstrated resilience and the ability to weather recent headwinds. The company's strong financial performance and growth prospects make it an attractive investment opportunity for investors and financial professionals.

References:
[1] https://www.gurufocus.com/news/2998998/rbbn-projects-strong-q3-ebitda-outlook-rbbn-stock-news
[2] https://finance.yahoo.com/news/verizon-federal-wins-power-ribbon-172636240.html
[3] https://www.stocktitan.net/news/RBBN/ribbon-communications-inc-reports-second-quarter-2025-financial-csxx5y7esxmo.html